Stock Options [Text Block] |
10.
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Stock Options
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On November 15, 2011, the Company granted
40,000
stock options to consultants of the Company with an exercise price of $0.30
per share, vested immediately and expiring on November 15, 2016.
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For the six months ended April 30, 2012, the Company recorded a total of $9,589
(2011: $Nil) for stock based compensation expenses. This is related to a non-exclusive agreement that the Company entered into with a third party IR services company, Trident Financial Corp., to assist the Company with the development and implementation of a public and investor relations and communications program, and provide ongoing assistance to the Company regarding the development and enhancement of the Company’s public and market image.
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The fair value of each option granted has been estimated as of the date of the grant using the Black-Scholes option pricing model with the following assumptions:
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Six months ended April 30, 2012 |
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Expected volatility |
129.14%
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Risk-free interest rate |
2.75%
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Expected life |
5
years
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Dividend yield |
0.0%
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A summary of weighted average fair value of stock options granted during the six months ended April 30, 2012 is as follows:
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Weighted |
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Weighted |
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Average |
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Average |
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Exercise |
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Fair |
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Period ended April 30, 2012 |
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Price |
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Value |
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Exercise price is greater than market price at grant date: |
$ |
0.30
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$ |
0.24
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A summary of the stock options for the six months ended April 30, 2012 is presented below:
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Options Outstanding |
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Weighted Average |
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Number of Shares |
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Exercise Price |
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Balance, October 31, 2011 |
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1,700,000
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$ |
0.26
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Granted |
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40,000
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0.30
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Balance, April 30, 2012 |
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1,740,000
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$ |
0.26
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The Company has the following options outstanding and exercisable:
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April 30, 2012 |
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Options outstanding |
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Options exercisable |
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Weighted |
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Weighted |
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Weighted |
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average |
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Average |
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Average |
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Range of |
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Number |
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remaining |
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Exercise |
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Number |
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Exercise |
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Exercise prices |
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of shares |
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contractual life |
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Price |
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of shares |
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Price |
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$0.20
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150,000
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2.72
years
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$ |
0.20
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150,000
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$ |
0.20
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$0.20
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850,000
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3.29
years
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$ |
0.20
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850,000
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$ |
0.20
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$0.35
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700,000
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4.20ye
ars
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$ |
0.35
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700,000
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$ |
0.35
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$0.30
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40,000
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4.24ye
ars
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$ |
0.30
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40,000
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$ |
0.30
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Total |
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1,740,000
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3.41
years
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$ |
0.26
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1,740,000
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$ |
0.26
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9.
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Stock Options
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On January 20, 2010, the Company approved a new 2010 Equity Compensation plan and granted 975,000 stock options to directors and consultants of the Company with an exercise prices of $0.20, vested immediately and expiring on January 20, 2015.
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On August 16, 2010, the Company granted 150,000 stock options to a consultant of the Company with an exercise price of $0.20, vested 75,000 immediately and 75,000 on August 16, 2011 and expiring on August 16, 2015.
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On July 11, 2011, the Company granted 700,000 stock options to directors and officers of the Company with an exercise price of $0.35 per share, vested immediately and expiring on July 11, 2016.
For the year ended October 31, 2011, the Company recorded a total of $179,789 (2010: $161,366) for stock based compensation expenses.
The fair value of each option granted has been estimated as of the date of the grant using the Black-Scholes option pricing model with the following assumptions:
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Year ended October 31, 2011
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Year ended October 31, 2010
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Expected volatility
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131.14%
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145.85%
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Risk-free interest rate
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2.75%
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2.46%
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Expected life
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5 years
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5 years
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Dividend yield
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0.0%
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0.00%
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A summary of weighted average fair value of stock options granted during the year ended October 31, 2011 is as follows:
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Weighted
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Weighted
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Average
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Average
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Exercise
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Fair
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Period ended October 31, 2011
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Price
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Value
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Exercise price is greater than market price at grant date:
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$ 0.35
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$ 0.26
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Weighted
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Weighted
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Average
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Average
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Exercise
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Fair
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Year ended October 31, 2010
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Price
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Value
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Exercise price is greater than market price at grant date:
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$ 0.20
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$ 0.14
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A summary of the stock options for the year ended October 31, 2011 is presented below:
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Options Outstanding
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Weighted Average
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Number of Shares
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Exercise Price
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Balance, October 31, 2010
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1,525,000
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$
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0.20
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Granted
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700,000
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0.35
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Exercised
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(225,000
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0.20
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Expired
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(300,000
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0.20
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A. Balance, October 31, 2011
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1,700,000
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$
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0.26
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The Company has the following options outstanding and exercisable:
October 31, 2011
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Options outstanding
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Options exercisable
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Weighted
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Weighted
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Weighted
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average
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Average
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Average
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Range of
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Number
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remaining
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Exercise
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Number
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Exercise
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Exercise prices
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of shares
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contractual life
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Price
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of shares
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Price
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$0.20
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150,000
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3.80 years
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$
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0.20
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150,000
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$
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0.20
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$0.20
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850,000
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3.23 years
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$
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0.20
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850,000
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$
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0.20
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$0.25
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700,000
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4.70 years
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$
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0.35
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700,000
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$
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0.35
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Total
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1,700,000
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3.87 years
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$
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0.26
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1,700,000
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$
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0.26
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October 31, 2010
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Options outstanding
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Options exercisable
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Weighted
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Weighted
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Weighted
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average
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Average
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Average
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Range of
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Number
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remaining
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Exercise
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Number
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Exercise
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Exercise prices
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of shares
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contractual life
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Price
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of shares
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Price
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$0.20
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150,000
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4.79 years
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$
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0.20
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75,000
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$
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0.20
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$0.20
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975,000
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4.22 years
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$
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0.20
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975,000
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$
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0.20
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$0.20
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75,000
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0.72 years
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$
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0.20
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75,000
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$
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0.20
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$0.20
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325,000
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0.64 years
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$
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0.20
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325,000
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$
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0.20
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Total
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1,525,000
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3.34 years
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$
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0.20
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1,450,000
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$
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0.20
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